DNB Bank will no longer provide custody services for foreign clients, Global Custodian understands, brining to an end a service it has provided since 1925.
DNB Bank is one of Norway’s largest and oldest securities services providers, however it has faced stiff competition from SEB and Nordea in securities services across the Nordics region.
The increased competition has created a tougher environment to secure international investors.
Global Custodian understands the bank will discontinue providing these services to foreign clients by the end of the year.
It will continue to focus on custody for domestic clients in Norway and Sweden.
“DNB has decided to concentrate our custody services on the domestic market. Thus, DNB has made a strategic decision to terminate the sub-custody offer for international clients, and we aim to close this during the course of 2018,” said a spokesperson for the bank.
“Going forward DNB will focus on delivering local and global custody services to domestic clients in Norway and Sweden.”
DNB Bank has been a consistent high scorer in Global Custodian’s Agent Bank Survey, and has been one of the leaders of sub custody providers in Norway with strong scores in client services for foreign customers.
It also achieved a top score on value and commitment, above the global survey average.
DNB holds $130 billion of assets in sub-custody for domestic clients, however for foreign investors, its sub-custody business is dwarfed by that of SEB and Nordea.
While DNB holds just $28 billion in assets for international clients in Norway, SEB claims to have a 35-40% market share of international third-party business with $51 billion in assets under sub-custody, and Nordea holds a leading $102 billion in Norway.